Automotive Supply Chain Solutions Content Draft

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Solving the Challenge of Volatility in the Automotive Supply Chain Industry

It’s no secret that the automotive supply chain industry is very complex from beginning to end, especially with the vast network of companies, suppliers, and buyers that all work together to produce and distribute an automobile. Coordinating this level of collaboration can be quite elaborate. There are many moving parts that must be synchronized for the automotive supply chain industry to function as it should.

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Can You See the Road Ahead?

Few industries experience as much uncertainty as the automotive industry. Sudden supply shortages or delays, volatile customer demand, increased competition from new market players, rapid obsolescence caused by equally rapid advancements in technology can all play a factor in disrupting the automotive supply chain.

This uncertainty leads to supply chain nervousness, which drives up costs, inventory, and lead times while driving down customer service levels for organizations all along the automotive supply chain.

It’s Time to Read the Signs

For many automotive industry manufacturers and distributors, supply chain volatility is getting worse. Ask yourself these five questions to assess the impact on your organization.

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Are you under pressure to shorten lead times?
Is order expediting becoming more common?
Are inventory levels growing?
Is cash flow constrained?
Are write offs increasing?

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What Can Go Wrong in the Automotive Industry Supply Chain?

The automotive industry supply chain is extremely complex and, because of its complexity, there are many challenges that can easily arise on a month-to-month and even day-to-day basis. Many of these automotive industry supply chain obstacles are outlined below.

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At a time when automotive supply chain volatility is increasing, the automotive customers’ tolerance for long lead times is lower than ever. Many automotive manufacturers are increasing inventory levels to try keep up with their customers’ demand for tighter delivery schedules.

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With so much supply chain volatility, order expediting has become a way of life for many in organizations in the automotive supply chain. But order expediting drives up costs and wreaks havoc on production schedules.

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Using spread sheets for materials and replenishment planning is one of the first signs of supply chain nervousness. When supply chain volatility increases, it’s hard to trust what your forecast-driven ERP systems tells you. Unfortunately, spreadsheets seldom improve the situation.

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The easiest way to cover the “rocks” in the automotive supply chain is to increase inventory at every level. Planners often take less heat if their organization has too much inventory than not enough.

[/fusion_flip_box][fusion_flip_box flip_direction=”down” title_front=”Is cashflow constrained?” title_back=”Is cashflow constrained?” text_front=”” icon=”fa-cogs fas” icon_color=”” circle=”” circle_color=”” circle_border_color=”” icon_flip=”” icon_rotate=”” icon_spin=”” image=”” image_id=”” image_max_width=”” background_color_front=”#ffffff” background_image_front=”” background_image_id_front=”” title_front_color=”” text_front_color=”” background_color_back=”” background_image_back=”” background_image_id_back=”” title_back_color=”” text_back_color=”” border_size=”” border_color=”” border_radius=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Ever-increasing inventory levels tie up capital that could be used for other purposes. While not all of our automotive customers immediately make the connection, cash flow issues are a common problem.

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Rapid technology advancements translate into faster inventory obsolescence in the automotive supply chain than in many other industries. Increasing write-offs contribute to tighter margins and a constrained cash flow.

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margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”none” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

The Right Automotive Supply Chain Management Solution Can Make a Difference

The challenge for organizations all across the automotive industry supply chain is that replenishment of materials and subcomponents is traditionally forecast driven. Traditional MRP works well for some components and materials, but not for those with a high degree of volatility in demand and supply, especially if their availability is critical to meeting the production schedule.

Demand Driven Material Requirements Planning (DDMRP) aligns replenishment to true market demand for improved customer service, lower lead times, better cash flow, and reduced inventory levels.

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Average Results from Client That Implement DDMRP

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Improved Customer Service

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Lead Time Compression

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Inventory Reduction

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Download The Whitepaper

[/fusion_title][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” content_align_medium=”” content_align_small=”” content_align=”left” size=”2″ font_size=”46px” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top_medium=”” margin_bottom_medium=”” margin_top_small=”” margin_bottom_small=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”#ffffff” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Demand Driven MRP in Automotive

[/fusion_title][fusion_button link=”https://share.hsforms.com/1WxlwOdEIQBuDzL39NJkt2A3njk1 ” text_transform=”” title=”” target=”_self” link_attributes=”” alignment_medium=”” alignment_small=”” alignment=”” modal=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” color=”custom” button_gradient_top_color=”#2f89c9″ button_gradient_bottom_color=”#2f89c9″ button_gradient_top_color_hover=”#43396e” button_gradient_bottom_color_hover=”#43396e” accent_color=”” accent_hover_color=”” type=”” bevel_color=”” border_width=”” border_radius=”” border_color=”” border_hover_color=”” size=”xlarge” stretch=”default” margin_top=”” margin_right=”” margin_bottom=”” margin_left=”” icon=”” icon_position=”left” icon_divider=”no” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]Download[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container 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Michelin Achieves 99% Service Level while Decreasing Inventory by 20%

Michelin Tires wanted to improve service levels to help its downstream automotive supply chain customers avoid delays. However, dealing with volatile customer demand signals and the need to keep inventory levels low created many challenges. Learn how Demand Driven Technologies automotive supply chain solution is helping Michelin achieve near-perfect service levels while decreasing inventory.

“Our Demand Driven MRP processes have significantly improved flow management. The Replenishment+ solution is easy to use.”

[/fusion_text][fusion_builder_row_inner][fusion_builder_column_inner type=”1_2″ layout=”1_2″ spacing=”” center_content=”no” hover_type=”none” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” border_color=”” border_style=”solid” border_position=”all” border_radius=”” box_shadow=”no” dimension_box_shadow=”” box_shadow_blur=”0″ box_shadow_spread=”0″ box_shadow_color=”” box_shadow_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” dimension_margin=”” background_type=”single” background_color=”” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_image=”” background_position=”left top” background_repeat=”no-repeat” background_blend_mode=”none” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_type=”regular” 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Supply Chain gone a bit crazy?

[/fusion_title][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” font_size=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” line_height=”” letter_spacing=”” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]If you’re in the automotive supply chain, you’ve undoubtedly been through many continuous improvement initiatives – some more successful than others. 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How to Optimize Automotive Industry Supply Chain Management

The list above may be worrisome, but it is only the tip of the iceberg when it comes to potential snags in the automotive industry supply chain. That is exactly why optimizing your automotive supply chain management, given the complex involvements, is key. Fortunately, with good automotive supply chain management, there are countless solutions to avoid and combat these complexities, a few of which include:

Strengthening Customer Service

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The customers are the core of any good supply chain or business model, so improving customer relationships is just one of the ways our automotive supply chain solutions recognize and address that.

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Factoring Real-Time Market Demand

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With strong automotive supply chain management, you can factor in the actual market demands so that your materials and production can fluctuate and respond to the market in real-time.

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Lowering Lead Times

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Lead time compression is a huge automotive supply chain solution that can transform your system entirely for both the manufactures and the buyers alike.

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Optimizing Inventory Levels

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Flow management is an essential part of the automotive industry supply chain. With additional communication, regulations, and management, inventory levels can be more optimized and accurate than ever before.

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Sales & Revenue Building

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The culmination of these factors can lead to an increase in sales and revenues for many clients that implement these changes and optimizations. At the end of the day, this is a make-it-or-break-it factor in any service or business and can be very impactful in the overall success of a supply chain.

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And More!

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This is only the beginning of the optimization and organization benefits that come with dependable automotive industry supply chain management, especially with the expert solutions at Demand Driven Technologies.

Satuerca finds 20% more capacity with DDMRP and Achieves record revenues

Production capacity is almost always an issue for manufacturers in the automotive supply chain. For SATUERCA, supply chain volatility created planning issues for their stamping and machining processes. Learn how Demand Driven Technologies helped SATUERCA get its constant schedule changes under control.

“Our Demand Driven MRP processes have significantly improved flow management. The Replenishment+ solution is easy to use.”

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Yuko Lubricants reduced overstock and increased sales

Yuko Lubricants supplies made-to-order and privately branded products to automotive supply chain partners around the world. All in all, the company handles production planning and replenishment for than 2,000 SKUs. Demand Driven Technologies’ automotive supply chain solutions helped Yuko decrease finished goods inventory by 60% while increasing sales by 13%.

“All complex questions have simple answers. And the DDMRP methodology is understandable for both managers and planners.”

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WHAT DOES THE DDMRP JOURNEY LOOK LIKE?

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Replenishment+ from Demand Driven Technologies works with your existing systems. In this short video, Michelin Tire’s Supply Chain Lead Process Engineer talks about the process his company follows each time they implement DDMRP in a new factory.

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Put Demand Driven Technologies Automotive Supply Chain Solutions to Work for You

Demand Driven Technologies and our automotive supply chain partners around the world are committed to delivering tangible and sustainable results for our clients. In fact, many of our automotive customers who have been trying to solve their supply chain challenges for years start to see tangible results in the first month with DDMRP from Demand Driven Technologies.

Getting started is easy, and with our proven discovery process, you’re one step closer to seeing real results.

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Request a Meeting to Learn More

We’ll explore your business and your target goals to see if DDMRP might be able to help you reach them.

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Watch a Demonstration

If DDMRP is right for your business, we’ll show you how our software works.

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Simulate your Results

Next, we’ll ask you for some real data so you can see exactly the kinds of results DDMRP can deliver to YOUR business.

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Begin Your DDMRP Journey

We’ll help you develop the best approach for your supply chain.

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Automotive Supply Chain Solutions from Demand Driven Technologies

An innovative, dependable automotive supply chain solution can make all the difference for automotive manufacturers, suppliers, and distributors alike. Strong automotive supply chain solutions can take the supply chain process from ordinary to extraordinary and virtually eliminate the problems listed above.

That’s where Demand Driven Technologies can help.

Demand Driven Technologies supply chain solutions align each part of the automotive supply chain factoring in demand and market changes along the way. Learn more about all the ways that Demand Driven Technologies can transform your automotive industry supply chain!

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We are committed to delivering tangible and sustainable results for our clients.

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Materials Planning

Sales & Operations Planning

Scheduling & Execution Planning

Demand Planning

Auto Pilot

Automotive Supply Chain Solutions Content Draft

Solving the Challenge of Volatility in the Automotive Supply Chain Industry

It’s Time to Read the Signs

What Can Go Wrong in the Automotive Industry Supply Chain?

The Right Automotive Supply Chain Management Solution Can Make a Difference

How to Optimize Automotive Industry Supply Chain Management

Put Demand Driven Technologies Automotive Supply Chain Solutions to Work for You

Automotive Supply Chain Solutions from Demand Driven Technologies

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